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Continue revenue deficit grant to Himachal, CM requests Panagariya

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Chief Minister Sukhvinder Singh Sukhu today urged the Finance Commission to continue the revenue deficit grant in view of topographical disadvantages and limited scope for raising revenue in Himachal Pradesh.

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He met Dr Arvind Panagariya, Chairman of the 16th Finance Commission, in New Delhi and sought the cooperation of the commission in strengthening the financial condition of the state. He also sought the creation of a separate ‘Green Fund’ for all hill states keeping in mind their geographical disadvantages.

Sukhu said, “The revenue deficit grant must be continued keeping in view topographical disadvantages and limited scope of Himachal for raising revenue. The state is facing a financial crisis because of a steep tapering of the revenue deficit grant by the 15th Finance Commission.”

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He said, “The state government is following the path of fiscal prudence and is one of the best performing states in the country on various parameters, including sustainable development goals.” Panagariya assured Sukhu of all possible assistance to the state.

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